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Ryan Specialty Group Holdings, Inc. Class A (RYAN)
:RYAN
Top Page
Ryan Specialty Group
(NYSE:RYAN)
78Outperform
Positive Factors
Analyst Recommendation
Analyst reiterates a BUY rating with a price objective of $92, indicating confidence in the stock's potential growth.
Financial Performance
Adjusted EPS of $0.45, up 27% year-over-year, were in line with consensus estimates.
Growth Opportunities
Significant opportunities for growth include the delegated authority market and launching new MGUs and programs.
Negative Factors
Competition
Uncertainty about potential competition from MMC or AON entering the wholesale market could increase competition for RYAN.
Debt Leverage
RYAN's debt leverage is approaching its maximum levels, which may limit financial flexibility.
Interest Rates Impact
Management expects headwinds resulting from lower interest rates, impacting fiduciary investment income.
Ryan Specialty Group (RYAN) vs. S&P 500 (SPY)
Market Cap
$19.10B
Dividend Yield0.6%
Average Volume (3M)919.72K
Price to Earnings (P/E)102.1
Beta (1Y)0.25
Revenue Growth20.95%
EPS Growth48.72%
CountryUS
Employees5,250
SectorFinancial
Sector Strength82
IndustryInsurance - Specialty
Share Statistics
EPS (TTM)0.35
Shares Outstanding125,726,295
10 Day Avg. Volume848,545
30 Day Avg. Volume919,720
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)N/A
Price to Sales (P/S)7.40
Price to Cash Flow (P/CF)17.90
P/FCF Ratio17.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$76.11Price Target Upside4.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Ryan Specialty Group Business Overview & Revenue Model
Company DescriptionRyan Specialty Group Holdings, Inc. operates as a service provider of specialty products and solutions for insurance brokers, agents, and carriers. It offers distribution, underwriting, product development, administration, and risk management services by acting as a wholesale broker and a managing underwriter. The company was founded in 2010 and is headquartered in Chicago, Illinois.
How the Company Makes MoneyRyan Specialty Group makes money primarily through its wholesale brokerage and managing general underwriting services. The company earns revenue by acting as an intermediary between insurance carriers and retail insurance brokers, facilitating the placement of insurance policies. It earns commissions and fees from these transactions. Additionally, as a managing general underwriter, Ryan Specialty Group designs and administers specialty insurance products, earning underwriting income by managing policies on behalf of insurance carriers. Key revenue streams include brokerage commissions, underwriting fees, and service fees. The company's earnings are significantly influenced by its ability to maintain strong relationships with insurance carriers and brokers, as well as its capacity to innovate and provide tailored insurance solutions for complex and emerging risks.
Ryan Specialty Group Financial Statement Overview
Summary
Ryan Specialty Group exhibits strong financial performance with robust revenue and profit growth, efficient cash flow management, and effective use of equity. However, the high leverage level remains a potential risk factor that needs monitoring. Overall, the financial statements reflect a well-managed company with solid growth prospects, albeit with some financial structure considerations.Income Statement
Ryan Specialty Group shows a strong revenue growth trend with a significant increase over the past years, notably a 21% growth from 2023 to 2024. The Gross Profit Margin stands at approximately 36.7% for 2024, indicating efficient cost management. Net Profit Margin improved markedly to 9.1% in 2024, showcasing enhanced profitability. However, the EBIT and EBITDA margins are relatively moderate at 17% due to high operating expenses. Overall, the company demonstrates solid profitability and growth trends, with potential room for optimizing operational efficiencies.85
Very Positive
Balance Sheet
The Balance Sheet reflects a moderate level of leverage with a Debt-to-Equity Ratio of 5.52 in 2024, highlighting substantial reliance on debt financing, which could pose risks if interest rates rise. The Equity Ratio is low at 6.5%, indicating limited equity funding compared to total assets. However, Return on Equity (ROE) improved to 36.6%, suggesting effective utilization of shareholders' equity to generate profit. While the company is leveraging its finances well for growth, the high debt levels could be a potential risk factor.78
Positive
Cash Flow
The Cash Flow statement shows robust Free Cash Flow growth of 4.6% from 2023 to 2024, signaling strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 2.24, illustrating efficient conversion of net income into cash flows. The Free Cash Flow to Net Income Ratio is 2.03, also indicating strong cash flow generation relative to profits. Despite high capital expenditures, the company maintains healthy cash flow metrics, supporting its growth and operational needs.83
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.52B | 2.08B | 1.73B | 1.43B | 1.02B |
| Gross Profit | ||||
| 924.63M | 756.52M | 596.21M | 441.15M | 360.06M |
| EBIT | ||||
| 427.81M | 359.08M | 181.82M | 61.56M | 77.06M |
| EBITDA | ||||
| 427.81M | 497.60M | 418.32M | 186.62M | 235.58M |
| Net Income Common Stockholders | ||||
| 94.67M | 61.04M | 163.26M | 65.87M | 68.10M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 540.20M | 838.79M | 992.72M | 386.96M | 312.65M |
| Total Assets | ||||
| 9.65B | 7.25B | 6.38B | 5.46B | 4.53B |
| Total Debt | ||||
| 3.46B | 2.16B | 2.16B | 1.68B | 1.69B |
| Net Debt | ||||
| 2.92B | 1.32B | 1.16B | 1.30B | 1.38B |
| Total Liabilities | ||||
| 8.55B | 6.27B | 5.57B | 4.86B | 4.46B |
| Stockholders Equity | ||||
| 627.66M | 559.75M | 478.40M | 343.77M | 69.79M |
| Cash Flow | Free Cash Flow | |||
| 467.87M | 447.43M | 320.47M | 263.71M | 122.89M |
| Operating Cash Flow | ||||
| 514.87M | 477.20M | 335.51M | 273.49M | 135.39M |
| Investing Cash Flow | ||||
| -1.76B | -476.23M | -22.42M | -457.94M | -865.42M |
| Financing Cash Flow | ||||
| 1.17B | -12.61M | 314.76M | 429.28M | 989.24M |
Ryan Specialty Group Technical Analysis
Positive
72.93
Price Trends
68.76
Positive
68.46
Positive
65.85
Positive
Market Momentum
1.26
Negative
65.72
Neutral
72.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RYAN, the sentiment is Positive. The current price of 72.93 is above the 20-day moving average (MA) of 70.83, above the 50-day MA of 68.76, and above the 200-day MA of 65.85, indicating a bullish trend. The MACD of 1.26 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RYAN.
Ryan Specialty Group Risk Analysis
Ryan Specialty Group disclosed 74 risk factors in its most recent earnings report. Ryan Specialty Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ryan Specialty Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $87.14B | 52.42 | 9.46% | 0.70% | 15.21% | 46.99% | |
78 Outperform | $19.10B | 102.10 | 15.88% | 0.60% | 20.95% | 48.72% | |
77 Outperform | $35.24B | 35.59 | 16.35% | 0.46% | 12.89% | 13.50% | |
76 Outperform | $119.05B | 29.61 | 31.80% | 1.30% | 7.60% | 8.66% | |
73 Outperform | $85.22B | 31.59 | 100.25% | 0.68% | 17.51% | 1.31% | |
72 Outperform | $2.01B | 27.50 | 5.29% | 2.72% | 10.33% | 137.93% | |
63 Neutral | $14.20B | 10.11 | 9.01% | 4.34% | 16.34% | -11.27% |
* Financial Sector Average
Performance Comparison
RYAN
Ryan Specialty Group
73.87
20.03
37.20%
AON
Aon
399.09
72.17
22.08%
AJG
Arthur J Gallagher & Co
345.24
100.11
40.84%
BRO
Brown & Brown
124.40
38.57
44.94%
MMC
Marsh & Mclennan Companies
244.03
43.11
21.46%
STC
Stewart Information Services
71.35
9.09
14.60%
Ryan Specialty Group Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 6.50% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, significant organic growth, and successful M&A activity. However, challenges in the property segment due to rate deterioration and external events like the California wildfires were noted as concerns. Overall, the positive achievements in revenue and growth metrics outweigh the lowlights.Highlights
Strong Organic Revenue Growth
For the quarter, Ryan Specialty delivered organic revenue growth of 11%, on top of a tough quarterly comparable of 16.5%. For the full year, organic growth was 12.8% compared to 15.4% in 2023.
Record Revenue Achievement
The company surpassed $2.5 billion in revenue for the full year 2024, marking the sixth consecutive year of 20% or more top-line growth.
Successful M&A Strategy
Ryan Specialty completed seven acquisitions with trailing revenue of over $265 million, marking the largest year of M&A in its history.
Strong Performance in Casualty Segment
Casualty practice had an outstanding year with strong new business generation and high renewal retention.
Adjusted EBITDAC and EPS Growth
Full year adjusted EBITDAC grew 30% to $811 million, and adjusted earnings per share grew 30% to $1.79.
Lowlights
Property Rate Deterioration
Property pricing declined modestly early in Q4, with significant acceleration in December, impacting growth in the property segment.
California Wildfires Impact
California wildfires were mentioned as a significant factor affecting the insurance landscape, highlighting the challenges in property insurance.
Company Guidance
During the fourth quarter and full year 2024 earnings call for Ryan Specialty Holdings, management provided guidance indicating strong financial performance and strategic advancements. The company achieved an organic revenue growth of 11% for the quarter and 12.8% for the full year, surpassing $2.5 billion in total revenues, which marked a 21% increase year-over-year. Adjusted EBITDAC grew by 30% to $811 million, with an adjusted EBITDAC margin expansion of 210 basis points to 32.2%. The firm also reported a 30% rise in adjusted earnings per share to $1.79. Looking forward, the company projected continued double-digit organic growth in 2025, supported by secular growth drivers and strategic M&A initiatives, including the completion of seven acquisitions with trailing revenue over $265 million. The guidance anticipates a further adjusted EBITDAC margin expansion to between 32.5% and 33.5% for 2025, while maintaining a strong focus on M&A and strategic investments.Ryan Specialty Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Ryan Specialty Group Appoints New Chief Operating Officer
Positive
Mar 27, 2025
On March 27, 2025, Ryan Specialty Holdings, Inc. announced the appointment of Stephen P. Keogh as Chief Operating Officer, effective May 1, 2025. Keogh, with over 32 years of experience at Aon plc, is expected to bring significant operational and leadership expertise to Ryan Specialty. His appointment is seen as a strategic move to enhance the company’s operational excellence and optimize its platform, aligning with its growth ambitions. The compensation package includes a base salary, an annual bonus, and performance stock units contingent on achieving specific growth targets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.